How to Select the “Right” Contractor

How to Select the “Right” General Contractor (GC)

Whether you are planning to build a brand new house or just remodel your existing house, most homeowners need the services of a reliable and reasonably priced general contractor who can manage the services of other contractors.  The alternative to hiring a general contractor is to search, verify credentials, interview, negotiate, and contract with other contractors (e.g. an electrician, a plumber, an HVAC specialist, a carpenter, a painter, etc.) directly and then to manage the entire project yourself.  Most homeowners do not have the experience nor the desire to become their own general contractor!

1. Know what you want before you get estimates.

Before hiring any contractor, it’s important to do your research. You’ll get a more accurate estimate if you can be very specific about what you want done and the materials you would like to use.

Detailed plans will leave less room for errors or misunderstandings. Make sure to get everything in writing; this protects you and your contractor.

2. Search for a contractor with the experience needed.

You could ask friends, family, and neighbors for reliable contractors. If they have had some type of construction completed, they probably can point you a contractor. In addition, they can let you know if the contractor was reliable, if the contractor finished the project on time, and if the contractor was able to complete the project within the budget.

There are also numerous online sites such as angieslist.com, buildzoom.com, and advisor.com, to name only a few, that vet and rate contractors.

3. Verify license, registration, insurance, and no criminal record.

Reliability is only one of the qualities to look for in a general contractor.  Other desirable qualities include: registered and/or licensed in your state, insured, and no criminal record.

In New Jersey, the Division of Consumer Affairs (DCA) has a website (https://newjersey.mylicense.com/verification_4_6/) to verify if a person or business is registered. It contains the type of license, owners name and address, issue date, expiration date, and current status (i.e. active, expired, pending, deleted, or out of business).  In NJ the license type for general contractors is “Home Improvement Contractor”.  Note this is a registration only; it does not imply a tested skill set.  For example, Virginia requires GCs to pass a test demonstrating working knowledge of the Uniform Construction Code (UCC).  As stated in the NJ DCA website ”The New Jersey Contractor Registration Act (N.J.S.A. 56:8-136 et seq.) requires all full and part-time contractors who engage in “home improvements” to annually register with the New Jersey Division of Consumer Affairs as a Home Improvement Contractor (HIC). Since 2006, municipalities have been barred from issuing construction permits to unregistered HICs.  In addition, applicants must complete the disclosure statement page of the application and: (1) provide proof of commercial general liability insurance with a minimum coverage of $500,000 per occurrence, (2) pay an initial registration fee of $110, and (3) certify that they have not been convicted of certain crimes, including but not limited to murder, kidnapping, sexual offenses, fraud or theft- related crimes.”

4. Conduct Interviews.

   Take time to check the contractor’s knowledge about permits in your area (permits can vary significantly from municipality to municipality) and how the contractor plans to meet budgets and schedules, as well as who’s going to do the actual work.  Some general contractors already have existing crews, whereas some work exclusively with subcontractors. Know the situation before you commit to a general contractor. Some key points to clarify prior to selecting a GC are listed below.

   • Ask for referrals from previous clients, where the contractor has done work similar to what you are planning to have done. Prepare a list of questions prior to calling any referrals.
   • Ask to see completed jobs where the work was similar to what you are planning.
   • Who will supervise the construction on site? Who will you be communicating with once the construction begins?
   • What work will be done by the contractor’s  own employees and what work will be done by subcontractors?
   • How long has the contractor worked with each specific subcontractor?
   • Ask to see an active jobsite.  Is it safe?  Is it clean?

5. Know a contractor’s credentials.

Abbreviations behind your contractor’s name can represent certifications from national trade organizations. These abbreviations show if the company is part of certain organizations that adhere to a strict code of ethics. Here are the most frequent memberships, titles, and abbreviations:

• Certified Graduate Remodeler (CGR) – requires 5 years of experience
• Certified Aging in Place specialist (CAPS)
• Building Industry Association (BIA)
• National Association of Home Builders (NAHB).

6. Check if the contractor has the right skillset.

Make sure the contractor you would like to hire has expertise in the type of work you want done. If the contractor has done relatively small jobs in the past, such as roof repairs, it does not mean the contractor has the required experience and knowledge to handle a house extension or a complete refurbishment.

7. Know what you’ll be paying for and when.

Ask your contractor to provide you a “scope of work” proposal. Usually, this proposal will break down the budget into line-item costs for labor, materials, fees, etc. It will also offer specifics about the tasks the contractor will perform such as demolition, installation, and cleanup as well as what materials will be used. The fee for the proposal is either paid up front or it can be applied toward the project cost in case the bid is accepted.  Avoid paying upfront fees. Schedule the payments to be due as work is completed and avoid purchasing too many materials upfront.

The bottom line, if you do your “due diligence” as outlined above, you will significantly increase the probability that the general contractor you selected will complete with quality workmanship, with required permits, within budget, and within the time allocated.